Tesla is rumored to be planning layoffs, shares are up. By Investing.com

© Reuters.

By Vlad Schepkov

Tesla (NASDAQ: ), the world’s largest electric car maker, is implementing a new hiring freeze and preparing for more layoffs, according to a report released early Wednesday by Electrek.co.

According to a “reliable source familiar with the matter,” the company has asked employees to hold off on new hires for now and prepare for another round of cuts to some teams in the first quarter of 2023.

No details on the number of jobs affected were given, noting that Tesla “still plans to expand at some manufacturing sites.” If confirmed, this would be TSLA’s second wave of workforce reductions in just eight months – in early June, the company’s CEO Elon Musk announced a 10% reduction in staff, citing worsening macroeconomic conditions and overly aggressive hiring in previous periods.

No major automakers have made layoffs recently, but Tesla isn’t the only tech company looking to better control its labor costs — tech giants like Meta (NASDAQ: ), Apple (NASDAQ: ), Amazon (NASDAQ: ) and Google (NASDAQ: ), among others, have all announced workforce freezes and cuts in recent months.

The rumor also reflects the current decline in TSLA shares – shares in the electric car giant have fallen by more than 65% since the start of the year, hit by global economic problems, as well as the controversial actions of its leader Elon Musk, including his acquisition of Twitter (NYSE: ) and the Tesla stock sale he made to fund it.

TSLA is up nearly 1% at the start of the session, after losing 8% in the previous session.

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